Buying an Auntie Anne's franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 10 7(a) loans to buy an existing Auntie Anne's (classified mostly as Limited-Service Restaurants), totaling $3.5M. The median loan was $362,500, 44% lower than the $645,250 median for all SBA-financed acquisitions.
Terms signed in the LOI shape the purchase agreement that follows.
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What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of Auntie Anne's resale loans landed between $251,350 and $480,375.
- Lender experience exists. Columbia Bank alone has financed 2 Auntie Anne's resales.
- Guaranty. The SBA guaranteed 77% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing an Auntie Anne's resale
The median SBA 7(a) loan for an Auntie Anne's resale was $362,500 across 10 loans (FY2018 to FY2026). Columbia Bank, PNC Bank, National Association and CenTrust Bank, A Division of SmartBiz Bank National Association have financed the most Auntie Anne's resales. Too few of these loans are old enough to measure a charge-off rate; the average for all SBA acquisition loans is 3.5%.
Auntie Anne's acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 2 | $789K | $394,700 | |
| FY2019 | 4 | $1.6M | $445,250 | |
| FY2020 | 1 | $250K | $250,000 | |
| FY2021 | 3 | $840K | $325,000 | |
| FY2022 | 0 | $0 | - | |
| FY2023 | 0 | $0 | - | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 0 | $0 | - | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Fewer than 20 Auntie Anne's acquisition loans are old enough to measure losses reliably, so no charge-off rate is shown. The benchmark across all SBA acquisition loans in the FY2018 to FY2021 cohort is 3.5% by count. Non-acquisition 7(a) loans (every other stated purpose) approved FY2018 to FY2021 charged off at 6.2%.
"Charged off" is the SBA's final loss action on a defaulted loan after collection efforts. It lags default by a year or more, which is why only older cohorts are measured. It is not the same as a delinquency rate, and loans still outstanding can still fail. See charge-off in the glossary.
The purchase agreement decides what you bought, not the loan approval.
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Lenders financing Auntie Anne's resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Columbia Bank | 2 | 20.0% | $390K | |
| 2 | PNC Bank, National Association | 1 | 10.0% | $551K | |
| 3 | CenTrust Bank, A Division of SmartBiz Bank National Association | 1 | 10.0% | $534K | |
| 4 | First Merchants Bank | 1 | 10.0% | $491K | |
| 5 | Hanover Community Bank | 1 | 10.0% | $450K | |
| 6 | United Community Bank | 1 | 10.0% | $400K | |
| 7 | Banc of California | 1 | 10.0% | $255K | |
| 8 | Open Bank | 1 | 10.0% | $250K | |
| 9 | North State Bank | 1 | 10.0% | $150K |
States where Auntie Anne's units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Pennsylvania | 2 | 20.0% | $1M | |
| 2 | California | 2 | 20.0% | $505K | |
| 3 | Oregon | 2 | 20.0% | $390K | |
| 4 | Wisconsin | 1 | 10.0% | $534K | |
| 5 | Indiana | 1 | 10.0% | $491K | |
| 6 | Alabama | 1 | 10.0% | $400K | |
| 7 | New Jersey | 1 | 10.0% | $150K |
That draft favors the seller. We review it for the buyer, line by line.
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How lenders classify Auntie Anne's
Lenders code each loan to a NAICS industry. For Auntie Anne's the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Limited-Service Restaurants | 5 | 50.0% | $1.3M | |
| 2 | Snack and Nonalcoholic Beverage Bars | 4 | 40.0% | $1.9M | |
| 3 | Baked Goods Retailers | 1 | 10.0% | $250K |
Questions buyers ask
How much do buyers borrow to buy an Auntie Anne's franchise?
The median SBA 7(a) loan for an Auntie Anne's resale was $362,500 across 10 loans (FY2018 to FY2026). The middle half of loans ran from $251,350 to $480,375. The loan excludes the buyer's equity and any seller note and may include working capital, so the price is usually higher than the loan.
Which banks finance Auntie Anne's acquisitions?
Columbia Bank has made the most SBA acquisition loans for Auntie Anne's (2, 20% of the total). PNC Bank, National Association, CenTrust Bank, A Division of SmartBiz Bank National Association, First Merchants Bank follow.
What interest rate and term do Auntie Anne's acquisition loans carry?
The average initial rate at approval was 6.72% (a blend of fixed and variable loans across several rate environments, so treat it as context, not a quote). The median term was 10 years.
Is an Auntie Anne's resale riskier than other SBA-financed acquisitions?
Too few Auntie Anne's acquisition loans are old enough to measure. The benchmark for all SBA acquisition loans is 3.5% charged off in the FY2018 to FY2021 cohort.
Where are Auntie Anne's units being bought with SBA loans?
Pennsylvania (2), California (2), Oregon (2), Wisconsin (1), Indiana (1). State counts follow where the brand has units and where SBA lending is most active generally; see the state pages for the overall picture.
Terms signed in the LOI shape the purchase agreement that follows.
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Related
- All Limited-Service Restaurants acquisitions
- Pennsylvania acquisitions
- California acquisitions
- Oregon acquisitions
- Columbia Bank
- PNC Bank, National Association
- CenTrust Bank, A Division of SmartBiz Bank National Association
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Auntie Anne's" (franchise code S0148). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.